Question

Which of the following would be considered common financing activities: Sale of Common Stock Purchasing fixed assets Payment of Cash Dividends Both A and C

Answer 1

Answer:

The correct answer to the following question is D) both options A ( sale of common stock ) and C ( payment of cash dividend ) would be considered as common financing activities.

Explanation:

Financing activities, whenever we talk about this, we refer to cash flow from financing activities , where cash flow is a form of financial statement which shows changes in balance sheet accounts and income statements accounts affect a company's cash and cash equivalents, and cash flow from financing activities is one of the three components of cash flow statement , where we will record all the cash inflows and outflows from the company which are related to financing activities. IN this type of activities we will include  sale and purchase of stock, issuing of stocks, borrowing and repaying of short term and long term loans and also payment of dividends.